Overall net fair value losses on its investment properties will be around $79 million for FY2024

OUE, which has interests in property, hospitality and healthcare, has warned that it will report a loss for its FY2024, which will reverse from earnings of $81 million reported for the preceding FY2023 ended Dec 31 2023.

The company attributes the expected losses to its share of losses from its 25.9%-held associate, Hong Kong-listed Gemdale Properties and Investment Corp.

According to Gemdale's Feb 14 statement to the Hong Kong Exchange, it expects to incur a loss of between RMB4.2 billion and RMB4.8 billion for its FY2024.

Gemdale attributes the poorer showing to lower margins from development projects; decrease in share of profits from projects and a "substantial increase" in impairment losses for properties under development and held for sale.

This means OUE's share of losses from Gemdale will be between $195 million and $223 million.

OUE says its overall net fair value losses on its investment properties will be around $79 million compared to an overall net fair value loss of $24 million recorded for FY2023. 

OUE shares closed at $1 on Feb 14, down 7.41% in the past 12 months.